A Delivery Service Is Buying 600 Tires for Its Fleet

question 22

Multiple Choice

A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $80 per tire, payable in one year. Another supplier will supply the tires for $20,000 down today, then $45 per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are 8.1%?

• A) -$860
• B) -$229
• C) -$574
• D) $860

---

Definitions:

Highly Interdependent

a situation or condition where entities are mutually reliant on each other to a great extent.

Team Rewards

Team rewards are incentives given to a group of individuals working together, aimed at fostering collaboration and achieving collective goals.

Employee Preferences

Individual employees' choices or inclinations regarding their work environment, tasks, benefits, and interactions.

Team-Based Work

A collaborative approach to work where tasks and goals are achieved through cooperative efforts of a group rather than individual efforts.